Budget repercussions - Portland Business Journal:

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“It does not look pretty,” said Superintendenr Carole Smith. Kulongoski’s budget, released this calls for $1.2 billion less in spending the next two Some predict the shortfall coulshit $2 billion in the next few months. That concerns Smith, other educators and social service providers who worryt about slashing jobs andcutting programs. “Come as early as we might be looking back to this day as a pointy where people wishthey were,” said Jilliaj Schoene, Kulongoski’s spokeswoman. “This could be the high-water mark.
” l If health care providerz are forced to pay a set of proposednew fees, Oregohn employers could experience health care cost increases, in the form of highe premiums or other means, of 5.5 l The Campaign for Oregon’s Seniorss & People with Disabilities projects that nearly 5,800 of Oregon’zs most vulnerable seniors and people with disabilities could lose accessx to critical services. Though Kulongoski’ss budget steers 6.8 percent more toward Departmentg of Human Services programs overthe 2007-09 budget, the governor said maintaininbg the department’s current services level would requiree a 28 percent funding increase.
The budget proposal could lead tonearly 15,000 lost jobs and eliminatre some $806 million in economic activity. l Communitgy colleges, which frequently team with businesses on jobstraininvg programs, face collective budgets that, at a base leveol of $485 million, are 8.9 percen lower than money allotted for the 2007-0 9 budget. At , that means a hit of $1.8 milliob in what spokesman Dana Haynezcalls “hard dollars.” “We took a serious cut at a time when the governofr said we’ll hold educatioh harmless,” she said.
“But he didn’t hold us Haynes said PCC’s financial managers don’t expect to cut positionse or entire programs, but that it will be difficulg to build on varioustraining “When people are coming to us every single day and saying, we want to be welders, technicians, it’s not a good time for us to retrencnh and offer less,” he said. Even Smith, with K-12 schoolse earning a 2.4 percent spending increase overthe 2007-09 biennium, worries that the figure isn’t enough to coved the district’s existing services for the next thre e years. The district’s annual budget is $452 million. Kulongoski, who release his budget Dec.
1, concedes that publicf schools across the state could fallsome $150 millionb short unless the state finds othet money. Others are nervous as well. collectse about $1 million, about 8 percent of its operating budget, each year from the state. If othert service providers lose theiroperatingb capacity, their clients could seek help from the food bank’sw regional branches. The Oregob Food Bank already distributes more food thanit “Because some people will no longerf have services, they’ll be driven into the emergency food system,” said Rachel Bristol, Oregon Food Bank CEO.
Rich COO of Portland-based Trillium Familt Services, said the children’s behavioral healthj provider has already done more with lessstated assistance. A recent state study found that residentialp youth mental health programs are currently underfunded by as much as 40 Trillium receivesabout $5.7 million in states backing each year. The level is expectef to stay the same, meaning the progranm must sustainany cost-of-living jumps. However, providers coulr become far busier. The same is true for the state’sa hospitals, which are vehemently protesting Kulongoski’s proposapl that could boost providetr taxes up another 4 or a shade higher than the overall marginslast year.
A second tax couldr levy another 1.5 percen t on premiums. “That’s a total potential 5.5 percent pass-through,” said Andy president and CEO of the andHealtb Systems. “I’m not sure the benefit outweigh thecosts Societally, we have to do somethinhg to address this issue.” for one, is preparing for the “We have enough in reserve that we won’t do anythiny dramatic this year,” she said. “But even thoughb there’s a 2.4 percenrt increase for now, it’s actually a loss when you look at thingsx like increased healthcare costs.
So there’s almosgt no way we won’t have to make